According to a recent report, almost 2.7 million businesses in the United States have been launched by Black women, solidifying them as the fasted growing group of entrepreneurs in the nation. Black women have always played a vital role in business and innovation in the United States, despite the lack of resources available to them.
A report by JP Morgan shows that about 61% of Black women self-fund their businesses due to a lack of start-up funding from outside investors. In fact, the rejection rate for Black women seeking funding for their ventures is three times higher than white business owners.
In fact, when it comes to business capital, statistics show Black women are still significantly underfunded, despite their growing numbers in the entrepreneurial space. Tosh Ernest, Head of Business Growth at JP Morgan suggests that the high rate of new businesses launched by Black women is likely a reflection of their dissatisfaction as employees in corporate America.
“Black women are positioned to play an increasingly visible and important role in the United States’ future like never before,” said Ernest. “To elevate their voice and their careers, and to achieve the American Dream of social and economic equality, we believe that entrepreneurship is key and that we must play our part in targeted efforts that enable Black women entrepreneurs to grow and sustain their businesses.”
